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These are zero-coupon bonds (principal=$1,000) with negative bond yields. If you buy the 2-year bond and hold it for only 1 year, what would be
These are zero-coupon bonds (principal=$1,000) with negative bond yields. If you buy the 2-year bond and hold it for only 1 year, what would be your rate of (1-year) return? (1) 0.128%; (2) 0.131%; (3) 0.262%; (4) 0.523%; (5) 1.0%; (6) 1.5%; (7) 1.262%; (8) 1.538%; [Assume that current yield curve stays unchanged for the next 1-year period.] Maturity zero-cpn bond 1-year -2.5% p.a. 2-year -1.0% p.a
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